CPChem to Double Polyalphaolefins Output at Belgian Plant

---

Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Chevron Phillips Chemical (CPChem) (The Woodlands, Texas) plans to build a new polyalphaolefins (PAO) plant in Beringen, Belgium, to meet growing global demand.

The company, owned by Chevron Corporation (NYSE:CVX) (San Ramon, California) and Phillips 66 (NYSE:PSX) (Houston, Texas), declined to say how much it plans to invest but said that the "significant investment" in the new unit would double the plant's PAO production capacity in Belgium to 120,000 tonnes per annum when commissioned in 2024. PAOs are specially designed chemicals made from alpha olefins. They are used in many synthetic products such as lubricants, greases, and fluids and have emerged as essential components in applications including automotive, industrial, cosmetics, technology, and military use, CPChem noted.

"Increased production from this new investment will be critical to support growing demand at a time of great innovation in several sectors that require PAOs," said Antoine Janssens, Europe-Africa region general manager.

Mitch Eichelberger, executive vice president of polymers and specialties, added: "Our Beringen plant has a long history of safe, reliable production of PAOs and of serving our customers with excellence. The construction of a new unit near our existing assets will allow us to benefit from strong local expertise and leverage Belgium's central position to meet customer needs globally."

CPChem said that the new unit will "enjoy significant advantages in infrastructure, feedstock availability, and operational expertise". CPChem also operates PAO units at its Cedar Bayou plant in Baytown, Texas. Belgium is a leading European country for the chemicals sector. The chemical, plastics and life sciences industry is the industrial pillar of the Belgian economy with a turnover of 61 billion euros (US$64 million) per year and more than 95,500 direct and 220,000 indirect jobs. It accounts for one-third of all Belgian exports, one-third of the industrial value-added and two-thirds of all private investment in research and development (R&D).

CPChem is also working on a hydrodesulfurization (HDS) unit at its Tessenderlo facility in Belgium. The plant, in operation for 40 years, has manufactured mercaptans--chemicals made from sulfur and used in many applications such as gas odorant, additives and antioxidants. The HDS unit will transform sulfur, currently a waste stream at the Tessenderlo plant, into hydrogen sulfide, a feedstock that will be used on-site for the production of mercaptans. It will also reduce sulfur dioxide (SO2) emissions and produce fuel to be used in a new cogeneration unit which functions to produce steam and electricity for the facility.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).